Overall Debt-to-Credit Ratio
According to CNN Money, your overall debt-to-available credit ratio should not exceed 25 percent. The Motley Fool notes that people with perfect credit do not have a debt-to-available credit of more than 35 percent. Your overall debt-to-available credit ratio is calculated by dividing your total credit card debt by your total credit card limits.
Limts for Each Card
According to MSN Money, you should limit your debt-to-available credit ratio on each of your credit cards to 30 percent or less. You can calculate the debt-to-available credit ratio for individual cards by dividing your current balance by the credit limit for that card.
Bottom Line
When determining what is a god debt-to-available credit score, you need to consider both your overall debt-to-available credit ratio and your ratio for each card because both impact your credit score. Keeping your total below 25 percent and each card below 30 percent will help improve your credit score.
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